Libor’s End Forces Global Banks to Juggle Multiple Replacements
- U.S., U.K. lead transition efforts; EU, Japan are trailing
- Beleaguered reference rates may no longer exist after 2021
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For the world’s biggest financial firms, getting ready for the end of one multi trillion-dollar global reference rate is a monumental undertaking. Getting ready for the end of half-a-dozen? Some would call that impossible.
Yet that’s what many market participants are facing as Libor’s demise approaches. The decision to phase out the scandal-tainted set of benchmarks by the end of 2021 is forcing regulators around the world to simultaneously push ahead with their own domestic funding-rate alternatives.